Introduction
Leather gloves are used as protective wear for human hands. They are available in types and sizes and are sought after by all but especially motor bicycle riders and military personnel. The demand for leather gloves exists both in domestic and export markets. The business idea aims at production of 520 pairs of gloves per month, which translates into 6,240 pairs annually. The revenue potential is estimated at $ 44,928 annually year with a sales margin of 9.8%. The total capital investment for the project is $ 2,780.
Plant Capacity
The profiled plant has a minimum capacity of 20 pairs of gloves per day.
Production Process
The fancy gloves manufacturing process involves selecting suitable leather of required colours and thickness, cutting the leather to the desired sizes and designs, and putting linings. Gloves are stitched with thumbs attached to the palm, textile lining are also stitched and joined with glove. Finally, buttons, elastic, are fitted and the gloves are packed.
Scale of Investment
Capital Investment Requirements
| Capital Item | Units | Qty | @ | Amount |
| Flat bed sewing machine | No | 1 | 120 | 120 |
| Cylinder bed stitching machine | No | 1 | 400 | 400 |
| Leather skiving machine | No | 1 | 1300 | 1300 |
| Zig-zag sewing machine | No | 1 | 700 | 700 |
| Jack setting machine | No | 1 | 30 | 30 |
| Button-hole making machine | No | 1 | 200 | 200 |
| Flexible dummies | Sets | 3 | 10 | 30 |
| Total | 2,780 |
Production and Operation costs General costs (Overheads)
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn Cost/ yr1 |
|---|---|---|---|---|---|---|
| Direct costs3: | ||||||
| Leather | Metres | 3 | 20 | 60 | 1,560 | 18,720 |
| Buttons | Boxes | 1 | 1 | 1 | 26 | 312 |
| Lining | Meters | 2 | 1 | 2 | 52 | 624 |
| Decoration | Meters | 2 | 1 | 2 | 52 | 624 |
| Sub-total | 1,690 | 20,280 | ||||
| Labour | 250 | 3,000 |
|---|---|---|
| Utilities | 200 | 2,400 |
| Selling and Distribution | 80 | 960 |
| Administrative expenses | 100 | 1,200 |
| Shelter | 200 | 2,400 |
| Depreciation machinery | 57.92 | 695 |
| Sub-total | 887.92 | 10,655 |
| Total Operating Costs | 2,578 | 30,935 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project Product costs and Price Structure
| Item | Qty /day | Qty/yr | @ | Pdn/yr | UPx | TR |
|---|---|---|---|---|---|---|
| Gloves | 20 | 6,240 | 4.96 | 30,935 | 7.2 | 44,928 |
| Total | 20 | 6,240 | 4.96 | 30,935 | 7.2 | 44,928 |
Profitability Analysis Table
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 144 | 3,744 | 44,928 |
| Less: Production and Operating Costs | 99.15 | 2,578 | 30,935 |
| Profit | 44.85 | 1,166 | 13,993 |
Sources of Supply of Equipment
All equipments and raw materials are present in Uganda at Kiyembe Lane along Market Street.
Government Facilities and Incentives
A favorable tax policy for investors/entrepreneurs, a liberalized economy and encouragement to export value added locally produced stuff.
